Business Environment Analysis

This assignment requires students to critically analyze the current business environment, identifying key factors that influence organizational strategy. It emphasizes the importance of understanding PESTLE, Porter's Five Forces, competitive advantage, and ethical considerations in shaping effective business strategies. Students are expected to conduct thorough research using provided resources, synthesize their findings, and present a well-structured analysis with relevant recommendations.

University
BUSINESS AND BUSINESS ENVIRONMENT
Student Name
Lecturer Name
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Table of Content
Introduction......................................................................................................................................3
LO 1 Discuss the different types, scope and size of organizations.................................................3
Task 1...............................................................................................................................................3
P1 Different types and purpose of organizations with the structures and legal process..................3
M1 Different organizations link to business objectives, products and service offered by the firm 8
LO 2 Discuss the interrelationship of various functions within the firm and link the
organizational structure...................................................................................................................9
P3 Relationship between organizational functions and link to objectives and structures...............9
M2 Advantage and disadvantage of interrelationships functions and the impact on the
organizational structure...................................................................................................................9
D1 Critical analysis of the different types of business structure and interrelationship of different
organizational function..................................................................................................................10
Task 2.............................................................................................................................................11
LO 3 Describe the macro environment effects on the business operations for both positive and
negative impacts............................................................................................................................11
Task 3.............................................................................................................................................11
P4 Identify the negative and positive impacts from the macro environment on the business
operations with examples..............................................................................................................11
M3 PESTLE Model for analysis on the macro environment in the firm.......................................12
LO 4 Determine the weakness and strength of specified business and discuss the interrelationship
with external macro factors...........................................................................................................13
Task 4.............................................................................................................................................13
P5 Analysis on internal and external on the specific organizations to enhance the weakness and
strength..........................................................................................................................................13
P6 Discuss the strength and weakness of external macro factors..................................................13
M4 Applying of SWOT to justify the decision-making................................................................14
D2 Evaluate the impacts arise from both micro and macro factors on developing the objectives
and decision making for business..................................................................................................14
Conclusion.....................................................................................................................................15
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References......................................................................................................................................16
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Introduction
The business and business environment means the external and internal factors that might affect
the entire functioning of the firm. It includes the management, employee, customers, business
regulation, supply and demand (Harmon and Trends, 2010). The main features of business
environment lie to cover the force and factor such as competitors, customers, government,
suppliers and legal conditions to achieve a high performance for the firm. For this case, different
types, scope and size in the business environment needs to be determined. The interrelationship
of various functions exits within the firm and developing the entire structure. The business
environment gets influence from both micro and macro factors.
LO 1 Discuss the different types, scope and size of organizations
Task 1
P1 Different types and purpose of organizations with the structures and legal
process
As the responsible CEO there lies with the different types of organizations such as sole traders,
partnerships, private, public or voluntary which helps to make the completion in the developed
business environment. There are different aspects that are required to be considered so that they
are able to focus on the business in appropriate manner (Bryman and Bell, 2015). Main focus of
any firm is to gain maximum profit. This is only possible when they are able to achieve the
desired goals and objectives. When these are done, then it becomes favourable enough to
develop strong customer base. Further, structure of the business is developed in accordance with
the preferences of organization. When there are many employees involved, then it requires to
have effective structure in which all are able to communicate with others.
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Figure 1: Business Environment
(Source: Cbse-notes.blogspot.in. 2017)
The organization provides the entity where a maximum amount of people could able to work
systematically to achieve the goal that is linked to the external environment. There exists with
the various legal types of organizations that lies with the non-governmental organizations,
corporations governments, political organizations and educational institutions (Sekaran and
Bougie, 2016). The main structure of organizations includes committee, ecologies, matrix and
hierarchies. The purpose of the organizations is to fulfil the values, vision and mission. This
provides the point that helps to meet the people on the right directions to get the achieved results.
Organization exists due to the group of people working together to obtain the set goals. For
example an individual might struggle to achieve the organizations set goal or group of people it
becomes more easy to meet the goal. In the country of U.K, there exists with three kinds of
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sectors such as primary, secondary and tertiary that make the operation for a firm. The primary
sectors include the raw materials, for example, coal has been mined or oil has been drilled from
underground. The secondary sectors lie with the process in the assembling and manufacturing,
for example getting of plastics from oil (Drucker, 2017). The tertiary sectors refer to a
commercial form of services that provides the support in the process of distribution and
production, for example, transport, advertising and other services. As per the structures used, it
includes functional, hierarchical, flat, etc. All these have their own set of benefits and
disadvantages. These make the business to attain their goals in appropriate manner. In
accordance with the legal process, there are certain set of services like providing employees with
proper health and safety, equipment’s to work, proper salary, etc. need to be considered by the
business (Trompenaars and Hampden-Turner, 2011).
Sole Trader
Sole trader provides the business structure that helps in the person trading at the time of legal
responsibility for carrying all the aspects of a business. It lies with the loss and debt that could
not be shared with other people. All the decision could be made before starting the business in
the sole trader.
The advantage of the sole trader is:
i. It provides the control of business at the time of running
ii. It makes the retention of profit at the time of carrying out of business
iii. All the private information are kept secure.
The disadvantage of sole trader
i. The unlimited amount of liabilities are obtained from sole trader
ii. The sole trader gets it difficult to raise the finance (Zikmund, Babin and Griffin, 2013).
The sole trader exists in the primary forms of sectors in the U.K country at the time of carrying
out of business.
P2 Discuss the size and scope different types of organizations
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The different scope of business exists with the partnership, limited company, public limited
company and government or charity (Ebert et al. 2014).
Partnership
The partnership form of business is the common form of business that is running in the entire
country of U.K. The most alternatives exist with the partnership lies getting help from a sole
trader and limited company. It provides the arrangements among the parties to advance the
mutual interest that assist the growth of a business.
The advantages of a partnership are followed as:
i. It provides the less formal process with a less amount of legal obligations
ii. The business could be easily started with the help of partners.
iii. This provides the access to the experience, skills and knowledge from the other partners.
The disadvantages of the partnership are followed as:
i. This type of business provides no legal form of status
ii. The unlimited amount of liabilities are obtained from this business (Macaulay, 2018).
The partnership business exists with the secondary sectors in the country of U.K (Wild et al.
2014).
Limited Company
The limited company provides the liabilities on the certain members that could be guaranteed to
the firm. The limited amount of shares could be obtained from the guarantee provided by the
firm.
The advantage of limited company
i. It provides the limited amount of liabilities when it comes to business
ii. It enhances the entity separation that provides the legal areas
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The disadvantage of limited company
i. It provides high cost at the time of carrying out business
ii. The accounts provide the restrictive and complex rules at the time of governing the accounts.
The Limited company sectors are chosen as the tertiary sectors in the country of U.K.
Public Limited Company
The Public Limited Company provides the legal form of distinctions that enhances the limited
amount of liability in the firm that provides the sharing of public limited liabilities. The legal
structure includes the enhancement in the U.K with the use of limited amount liabilities.
The advantage of the limited company are :
i. Raising of capital using the shares provided among the public
ii. Getting other financial opportunities
The disadvantage of the limited company are:
i. Getting of a more regulatory form of requirements (Storey,2016).
ii. Getting to high level of transparency
This belongs to the secondary sectors in the country of U.K at the time of carrying out of
business (Bryman and Bell, 2015).
Governments and Charity
The government and charity provide the maximum amount of charity that provides the help
among the people. This belongs to the tertiary sectors in the country of U.K at the time of
carrying out of business.
The different business organizations providers the maximum amount of size in the entire U.K
country and provides the importance on the following areas:
i. The growth of product
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ii. Use of resources
iii. Improvements in technology
iv. A creative form of thinking
v. Taking of quick decisions
vi. Fixing of proper form of responsibility
M1 Different organizations link to business objectives, products and service
offered by the firm
The strategic form of business objectives helps to meet the goals to achieve the success of a
business. The business objectives are followed as:
i. Increase in the market share
In order to develop the business, the increase of business share helps to meet the competitive
market. The product and service offered by the company could be addressed properly from the
planning of marketing (Osterwalder and Pigneur, 2010).
ii. Strengthening the financial aspects
The strengthening of financial aspects provides the growth objectives that help in the future
expansion of the business. All the services and products offered by the company could be
achieved from the development of financial resources (Charter, 2017).
iii. Productivity
The productivity is the important thing for the organizations to tune the entire business process to
achieve a better outcome for the consumers and yield maximum profit. The company could link
the services with the business objectives.
iv. Innovation
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The innovation is the important factor that assists the business to stay ahead of all the
competition existing in the market. This provides to create new products and offers a better form
of services among the customers.
v. Planning of action
Action planning is the vital objectives that provide the specific steps to meet the set goals. The
entire action planning could be developed through the SMART goals.
LO 2 Discuss the interrelationship of various functions within the firm and
link the organizational structure
P3 Relationship between organizational functions and link to objectives and
structures
NATWEST is one of the world's leading international banks that provide the 4,400 offices. It
enhances a wide range of financial services and products through the commercial banking,
market personal financial service, and investment banking (Turban, Sharda and Delen, 2011).
NATWEST needs to follow two types of organizational structure that could be approved by the
clients. All the organizations try to follow a particular structure to meet the set goals and increase
higher sell. The different types of organizational structure are followed as:
i. Functional structure
ii. Divisional structure
iii. Matrix structure
The organizational structure provides the interrelationship that helps to carry out specific
functions to meet the set objectives to achieve the goals. NATWEST banks need to follow the
functional and divisional form of structure to carry out the financial services properly among the
clients (Sekaran and Bougie, 2016).
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M2 Advantage and disadvantage of interrelationships functions and the
impact on the organizational structure
The functional organizational structure provides the better interrelationship on a specified
function to achieve the set goals. The organizational structures and organizational function could
be strengthen from the interrelationship between them. All the sales, production, marketing and
research are the basic functions carried out in the entire organizational structure. The functional
structure provides the advantage at the time of developing a clear line of authority (Zikmund,
Babin and Griffin, 2013). It helps to allow the each staff members to concentrate on the
particular form of mission. The disadvantage of the functional structure lie to end up all the
departments that provides the form of corporate. The divisional organizational structure provides
various types of product line to carry out the entire marketing process. The advantage lie with the
branch that could execute the personnel at the time of getting proper functions. The disadvantage
lies with the staff members that provide the division in performance with the necessary
functions. The matrix structure provides the major flexibility at the time of completion of all the
functions required in the business. This provides the major advantage to adapt the organizational
function to make the required changes in the firm. The disadvantage of matrix structure lies with
the presence of chain in command that provides the major form of conflicts (Menychtas et al.
2014).
D1 Critical analysis of the different types of business structure and
interrelationship of different organizational function
The different type of business structure carried out by the organization develops the
interrelationship at the time of performing a specified function to meet the set goal. The company
to increase the performance follows three types of organizational structure (Trompenaars and
Hampden-Turner, 2011). All the small and large organization could able to achieve the higher
amount of sale and make the profit by matching the requirements of the structure at the time of
operating.
Functional Structure
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The functional structure could be implemented on the small and large business to focus on the
particular portion that could use to achieve the set goals. It could be able to rely on the
knowledge and talent that provides the support upon the staff members.
Divisional Structure:
The divisional structure is focused on the large firm which could able to operate in the wider
areas of the product or services. This type of structure is costly due to the scope and size and
provides the interrelationship functions (Cai and Yang, 2014).
Matrix Structure:
The matrix structure provides the hybrid form of functions that exist with the functional and
divisional structure. It allows the benefits that make the better form of function on the two forms
of structures.
Task 2
LO 3 Describe the macro environment effects on the business operations for
both positive and negative impacts
Task 3
P4 Identify the negative and positive impacts from the macro environment on
the business operations with examples
NATWEST CEO has tried to demonstrate the positive and negative impacts on the macro
environment to carry out the business operations. The macro environments determine with the
external factors that consist of the six forces. This force includes the demographic, economic,
natural, socio-cultural, political/legal and technology. NATWEST Company continuously needs
to thrive the marketing environment that provides the major opportunities (Sekaran and Bougie,
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2016). The entire marketing environment could be determined from the external factors that arise
from the PESTLE, which includes the Political, Economical, Social, Technology, Legal and
Environmental factors. Various type of treats and opportunity could be obtained from the macro
environment factors. The negative and positive forms could be obtained from the size of the
industry that enhances the maximum amount of efforts in the growth. The positive impacts lie
with the proper form of values that arise from the advanced technology and use of appropriate
methods in the legal trends. This makes the better forms of trends in the better change of
environment which helps in the growth of NATWEST firm. The negative impacts lie with the
social factors that provide huge problem for the growth of the firm and make the operation of a
business (Trevino and Nelson, 2016).
M3 PESTLE Model for analysis on the macro environment in the firm
The PESTLE Model determines the macro environment in the NATWEST Company to carry out
the better business environment external forms. The banking sectors could be determined from
various factors that might behave independently on the service or products offered.
Political
NATWEST is the world largest banking sectors that are on the various provisions obtained by
the governments. The law imposed by the government provide intervene in certain areas that
could be influenced to make the growth of a firm. The governments provide huge support upon
the bank to enhances a higher amount of performance (Ferrell and Fraedrich, 2015). There are
fiscal and monitory policies that are taken up by government and when there are frequent
changes that take place, then it has negative impact over Netwest.
Economic:
All the economic factors are tied down in the banking sectors. NATWEST performs a better
form of functions through the enhancement of cash flow that increases the economic condition in
the bank. The exchange rate might affects the bank through the current form of stability and
increased inflation rates (Bryman and Bell, 2015). There are situation of recession or inflations
take place and it requires to reduce the price of products by Netwest so that customers make
purchases.
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Social
The culture provides huge influence in the bank through the advanced necessities and behaviour
of people. People try to provide advice and assistance on the required loans at the time of
carrying out of business. Changes in taste and preferences of people taken place on regular basis
and when change are not make on regular basis as per customers’ requirements, then it has
negative impact over the Natwest.
Technology
The technology factors are the important tools that are required in the bank to manage all the
financial areas of the customers. All the meetings could be conducted through the advanced
technology in the bank by saving time. There are frequent changes identified in technology and
so new or update should be used so that better quality services are delivered by the business.
When these are not done, then it has negative impact over the growth of Natwest.
Legal
The entire banking procedures are followed with the legal aspects that include with the
consumers law and maintain of trade structure. There are many legislation that are to be followed
by government and when these are not followed, then it affects the perception carried out by
customers.
Environment
The proper form of business could be achieved by maintaining the environmental factors that
could make the better services in business (Kim et al. 2013). Natwest should make use of
strategies to make optimum use of resources so that they are able to support the environment to
grow.
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LO 4 Determine the weakness and strength of specified business and discuss
the interrelationship with external macro factors
Task 4
P5 Analysis on internal and external on the specific organizations to enhance
the weakness and strength
The internal and external on the NATWEST provides the specific forms that help to identify
weakness and strength. This could be determined from the microenvironmental factors that make
the weakness and strength on proper areas. This makes the better growth of business in the
NATWEST at the time of determining the strength and weakness (Harmon and Trends, 2010).
The strength provides the value and offers on the growth of firm through developing the
competitive advantage. It includes the tangible assets, which lie as capital, credit, equipment,
customers, and the entire processing systems. This helps in the development of the internal areas
that could be carried out by the NATWEST banking through the proper form of marketing,
finance, support and production. This makes the better form of organizational functions and
makes positive attributes at the time of developing of business. The weakness lies with the
detrimental growth on the service and products carried out by the company. NATWEST
Company needs to focus on the negative impacts that reduce the entire functioning required in
the banking sectors (Savrul et al. 2014).
P6 Discuss the strength and weakness of external macro factors
The external macro factors are interrelating with the weakness and strength at the time of
carrying out of business. The strength factors include the internal form of capability and the
proper use of resources that helps to achieve the set goals. It provides the better form of serving
the consumers at the time of visiting the bank. NATWEST Company provides the leading
banking industry, which promotes all the actions required in the finance. The proper services are
provided which makes the strength, relates to the external macro factors. The weakness might
refer to the capabilities and resources that the company lacks at the time of carrying out of
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business. NATWEST Company needs to change the weakness into the strength that helps to
increase the performance and yield the maximum profit (Boons and Lüdeke-Freund, 2013).
M4 Applying of SWOT to justify the decision-making
In the decision-making process, there requires with the analysis of SWOT that determines with
the Strength, Weakness, Opportunity and Threats in a manner that enhances the high amount of
performance in the banking sectors of NATWEST.
Strength
i. The current ratio could be increased
ii. The market share could be easily developed
iii. High morale of staff members are increased
Weakness
i. There is lack of strategic management system
at the time of the making of a decision.
ii. The decision-making capacity of the
employee reduces.
Opportunity
i. The business environment could be improved
that provides the expansion of a particular
business.
ii. NATWEST could get financial support from
the other bank as well as from the
governments.
Threats
i. There lies with the other banking sectors
existing in the market that makes the threats.
ii. All the decision is made other staff members
in the banking sectors (Storey, 2016).
D2 Evaluate the impacts arise from both micro and macro factors on
developing the objectives and decision making for business
There are various impacts arise from macro and micro factors that provide the development of
objectives and decision-making capabilities for business. These factors are followed as:
i. Large economic trends:
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The large economic trends could be obtained from the micro and macro factors that make the
better business environments and helps in decision making by the proper form of planning at the
time of inventory.
ii. Local trends:
The local trends provide the positive forms of impacts in the small business through the micro
and macro environments. The decision-making provides falling and rising of various
expectations of the customers (Belás et al. 2014).
Conclusion
It has been concluded that the business and business environments provide the positive and
negative impacts at the time of carrying out of business. There includes both micro and macro
environmental factors to determine the internal as well as external factors. In this case,
NATWEST Company has been chosen to develop the business through the financial aspects. As
a newly appointed CEO, the proper organizational structure needs to be introduced by the
company to implement the better operations.
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